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derwen25
26-06-2014, 05:48 PM
I was due to have a child start in September. (they booked it in March) The family have been intouch to say they won't be needing the space now as the wife has left her uni course and is pregnant. They paid a deposit. Which I stated was to be returned on comencement (if thats the right word??!) of the contract. What do I do? Im still new to all this and just wondef what rights they have to their deposit back as Ive turned people away due to keeping their childs place. Thank you in advance for any advice.

mama2three
26-06-2014, 05:50 PM
It all depends on the wording in your contract - but most likely you will get to keep the deposit .

derwen25
26-06-2014, 05:57 PM
It all depends on the wording in your contract - but most likely you will get to keep the deposit .

It says when the place is taken up the deposit is returned to parent. (I know it seems pretty obvious from that )- but just wanted to check. I was so gutted when they told me. It was going to be a huge boost to my income and Ive turned so many away since. :-(

AliceK
26-06-2014, 06:11 PM
When I take a deposit it is clearly written that it is non-refundable if parent for whatever reason doesn't take up the space. I have only had it happen once when a schoolie got in to their first choice of school after being on the waiting list so never started with me. I kept the deposit, it was never questioned.

xx

derwen25
26-06-2014, 06:22 PM
When I take a deposit it is clearly written that it is non-refundable if parent for whatever reason doesn't take up the space. I have only had it happen once when a schoolie got in to their first choice of school after being on the waiting list so never started with me. I kept the deposit, it was never questioned.

xx

Thanks, It was clearly said to them before signing contract. It is stated on their receipt that I gave them when the brought deposit and in contract states they get it back when place is taken.

I just paniced being new (only been minding 7 months) that I may have missed some tiny clause somewhere. They have asked to come for a chat - so am guessing they want the deposit back.

bunyip
26-06-2014, 07:11 PM
The key phrase you need in the contract is "non-refundable". Call the legal team at your insurer or professional representative body to check the contract is in order. :thumbsup:

rickysmiths
26-06-2014, 07:24 PM
Also a tip for the future. I take a four weeks fees Deposit. I actually say it is non refundable if the parent chooses not to start the contract or if they leave me in the first six months.

I don't refund it at the beginning of the Contract either, I keep it until the end and as long as all the fees are paid up to date when they give notice the Deposit covers the last four weeks of care.

derwen25
26-06-2014, 07:31 PM
Also a tip for the future. I take a four weeks fees Deposit. I actually say it is non refundable if the parent chooses not to start the contract or if they leave me in the first six months.

I don't refund it at the beginning of the Contract either, I keep it until the end and as long as all the fees are paid up to date when they give notice the Deposit covers the last four weeks of care.

Thanks for that. I think that way will be best for the future. You can only learn from experiences. I remember making it clear to them they wouldnt get it back if they didnt start the contract, but your way of it being non refundable in the first 6 mths is a good idea too.

loocyloo
26-06-2014, 07:39 PM
Also a tip for the future. I take a four weeks fees Deposit. I actually say it is non refundable if the parent chooses not to start the contract or if they leave me in the first six months.

I don't refund it at the beginning of the Contract either, I keep it until the end and as long as all the fees are paid up to date when they give notice the Deposit covers the last four weeks of care.

same here. although, usually my fees have gone up, so it doesn't always cover the last 4 weeks of care, but a lot of it!

I'm sure I've also read on here about childminders having a clause saying that if contracted hours are reduced in the 6 mths, then they forfeit a certain amount of deposit. I don't know quite how it is worked out, but it would be tempting to go down that route.

rickysmiths
26-06-2014, 10:20 PM
same here. although, usually my fees have gone up, so it doesn't always cover the last 4 weeks of care, but a lot of it!

I'm sure I've also read on here about childminders having a clause saying that if contracted hours are reduced in the 6 mths, then they forfeit a certain amount of deposit. I don't know quite how it is worked out, but it would be tempting to go down that route.

That's me!! If a parent reduces days or hours they loose that % of the Deposit unless they do it after the first six months snd give the required 4 weeks written notice.

A couple of years ago I seem to have a succession of parents who signed for 5 days and reduced it to 4 days before starting so I was out of pocket and then they would reduce the hours in a day (I have always charged by the hour) and I discovered they were basically using me as a stop gap until they got the hours they wanted at Nursery!!!

By loosing a % of the Deposit and all of it if they leave within 6 months has stopped this in its tracks.

Koala
27-06-2014, 06:54 AM
I just paniced being new (only been minding 7 months) that I may have missed some tiny clause somewhere. They have asked to come for a chat - so am guessing they want the deposit back.

Yes, they will want to waste your time giving you many reasons why it's not their fault that they aren't continuing with what they agreed. Stand firm, neither is it your fault but you have upheld your side of the bargain and they haven't for whatever reason and this is why they will not get their deposit back.

If I were you I would confirm this in writing and request any further communication to be in writing 'for your records' and for 'safeguarding' - why have strangers come to your setting who do not have anything to do with it? don't get drawn in to them asking:
we need the money back for the baby?
can you have lo for short period to use the deposit?
can we delay a start date for another year?
Bla, bla, bla.

On the other hand, they may wish to thank you for holding the place and want to apologize in person for letting you down and bring you a big bunch of flowers or extra severance pay for impacting so badly on your business!? :laughing: :laughing: :laughing:

derwen25
27-06-2014, 12:55 PM
Thank you all - you have given me an insight into problems I could face in the future and I am going to use all your experience to make a new policy on deposirs etc.

As an update the parents cancelled todays meeting and were very appologetic. No mention of the deposit so I need not have worried